The Solana price has been in a strong bullish trend in the past few months. SOL soared to an all-time high of $260, which was about 1,185% above the lowest level since July. Subsequently, the coin’s market capitalization has jumped to more than $74 billion. So, what next for SOL prices?
There are three main reasons why the price of Solana is in a strong bullish trend. First, the comeback of Solana coincides with the comeback of other cryptocurrencies like Ethereum, Ripple, and Avalanche. In most cases, the prices of these cryptocurrencies tend to move in sync.
Second, Solana price has jumped because of its growing ecosystem. In the past few months, the number of projects built on Solana has been rising. Indeed, data shows that the DeFi projects built on Solana have seen their total value locked (TVL) jump to more than $15 billion. This is a remarkable performance because Solana went mainstream this year.
Third, Solana is seeing strong growth in other areas like in the metaverse ecosystem and in non-fungible tokens (NFT).
Solana price prediction
A quick look at the daily chart shows that the SOL price has been rising rapidly recently. And last week, the coin managed to move above the key resistance level at $215. This was an important level since it was its all-time high. It was also along the upper line of the cup and handle pattern.
The price is above the 25-day volume-weighted moving average (VWMA) while the MACD has kept rising.
Therefore, for now, the trend is your friend. The bullish trend will likely remain intact as long as the price is above the 20-day moving average. I suspect that the price could rise to the next key level at $400. This will be confirmed when the price moves above $300.